A long-standing rule on cheque deposits may finally be changing after a decade
The federal government announced this week that it will review fees charged by banks and other financial institutions while making it easier for Canadians to access funds deposited by cheque.
Finance minister François-Philippe Champagne tabled the government’s 2025 budget, which includes measures aimed at lowering costs and protecting consumers conducting financial transactions. The government plans to increase oversight of regulated financial institutions to help Canadians “keep more of their money in their pockets.”
“Budget 2025 announces the government will review fees charged by banks and other federally regulated financial institutions, including Interac e-Transfer fees and ATM fees,” reads the budget document. “We will use every tool and agency at our disposal to address any unjustified fees and pain points for Canadians. We will provide an update on this work in 2026.”
The government did not specify which fees it will examine, a report from BNN Bloomberg noted. Common bank fees include monthly maintenance charges, ATM fees for using machines from different banks, overdraft fees, and insufficient funds (NSF) charges for returned transactions. Interac e-Transfer fees typically range from $0.50 to $1.50 per transaction, depending on the bank and account type.
TD Bank charges $0.50 per transaction up to $100 and $1 for transactions over $100 for personal accounts, while business accounts pay $1.50 per transaction. CIBC charges the same amounts but limits consumers to sending $3,000 within 24 hours, $10,000 within seven days, and $30,000 within 30 days.
The budget also proposes raising the amount of cheque funds immediately available to consumers from $100 to $150. The change would eliminate timing differences between deposits made in person and through other methods.
“Budget 2025 proposes to amend the Bank Act to raise the first amount of immediately available deposited cheque funds from $100 to $150 and to remove the timing distinction between funds deposited in person and via other means, as well as introduce regulations to apply the change to trust and loan companies,” reads the document.
BNN Bloomberg reported financial institutions currently place holds on cheques to verify that the issuer has sufficient funds, confirm no stop payment exists, check for alterations, and ensure the account remains open. The government acknowledged that cheque access rules have not been updated in a decade, despite cost-of-living increases and technological advances.
